Michael and Fez move into their apartment, but can't agree who gets the room next to the bathroom. Red visits and gives them a taste of how rudely guests can behave, repaying the kids' own irresponsible behavior in his basement. Eric wants to become a teacher but learns he failed physical education and can only get his diploma by taking summer classes in gym. The person in charge of Eric receiving the diploma is Michael Kelso's rather sleazy brother, Casey (with whom Eric has not gotten along, as both men were interested in Donna, who is now Eric's girlfriend). Casey, now a gym teacher, requires Eric to do a single successful pull-up to attain his diploma. Eric finally prevails. Kitty, there to support Eric, finds herself in lust over the fit and macho Casey, despite his treatment of her son.